Features » November 18, 2019

9 Stats That Show the Tax Code Favors the Ultra-Rich

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Economic inequality in the United States is the highest it’s been in the last 50 years. In recent decades, the richest 1% of Americans have accumulated nearly 40% of the country’s wealth. The net worth of just three individuals—Jeff Bezos, Bill Gates and Warren Buffett—dwarfs that of the entire bottom 50% of Americans. And it only seems to be getting worse.

Policy proposals from 2020 hopefuls like Elizabeth Warren and Bernie Sanders are seeking to change that. Warren’s “Ultra-Millionaire Tax” would impose a 2% tax rate on net worth in excess of $50 million, which becomes a 3% tax rate beyond $1 billion. In other words, any wealth between $50 million and $1 billion would be taxed at 2%, but the 1,000,000,001st dollar (as well as anything beyond that) would be taxed at 3%. Sanders’ “Tax on Extreme Wealth” plan goes even further by instituting a 1% tax rate on net worth above $32 million that rises steadily to 8% on all wealth over $10 billion. Warren’s campaign claims her plan would bring in $2.75 trillion in revenue. Sanders’ would likely raise even more, which he proposes to use as funding for his affordable housing plan, universal childcare, and some of Medicare for All.

Here are nine statistics from The Triumph of Injustice that show how tax injustice has contributed to inequality in America and the urgent need for reform:

52% — U.S. corporate tax rate in 1952

21% — U.S. corporate tax rate after Trump’s tax law

0% — Corporate tax rate in Bermuda

60% — Portion of profits U.S. multinationals collectively book in low-tax countries like Bermuda and Ireland